Session 1
28 August, 2025
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The purpose of the virtual meetings is to answer questions and not to make a summary of the study material.
This presentation is based on (Lewicki et al., 2024, Chapter 2)
Purpose
Buyer: Jackson (\(J\)) and Seller: Sofia (\(S\))1
Buyer: Jackson (\(J\)) and Seller: Sofia (\(S\))
Figure 2: Initial offers
Buyer: Jackson (\(J\)) and Seller: Sofia (\(S\))
Figure 3: Target points
Buyer: Jackson (\(J\)) and Seller: Sofia (\(S\))
Figure 4: Best alternatives to a negotiated agreement
Buyer: Jackson (\(J\)) and Seller: Sofia (\(S\))
Bargaining range2: \([\text{\$130K},\text{\$150K}]\)
Buyer: Jackson (\(J\)) and Seller: Sofia (\(S\))
Figure 6: Possible values for a settlement point
In the case of a distributive negotiation, it is most likely that the settlement point does not correspond to the target points of the participants in the negotiation.
In the example of \(J\) and \(S\) it was implicitly assumed that the negotiation element was the price. This element is known as a bargaining mix3 where it does not necessarily have to be a single element.
In (Lewicki et al., 2024, Chapter 2, p. 48-55) the recommended positions to be taken with regard to the following elements are pointed out:
Opening offers
Opening stance
Initial concessions
Final offer
Commitment means taking a stance in a negotiation and making a explicit or implicit promise about future actions.
A commitment is a way to create a bargaining position by specifying a future action if a position is not reached.
A commitment aims to clarify the negotiator’s planned actions and eliminate any uncertainty about their intentions.
However, they may also fix a negotiator to a particular position (Lewicki et al., 2024, Chapter 2, p. 56)
That is why when making commitments, one should also make contingency plans for a graceful exit if needed
Also it is important to point out that good, sound and deliberate commitments take time to establish so it is important to don’t commit prematurely (Lewicki et al., 2024, Chapter 2, p. 56)
The negotiations seek to reach an agreement if possible5. In order to achieve that goal with a greater probability, the following practices are recommended based on what is pointed out in (Lewicki et al., 2024, Chapter 2, pp. 59-60):
Offer similar options to the other parties to make the negotiation more flexible.
Assume a closing technique or stance.
Split the difference when a mutual adjustment process has been carried out.
Use exploding offers that refers to setting a deadline where a specific proposal is in force for a limited time.
Use sweeteners that refers to granting special concessions before closing.
Sometimes in negotiations people use hardball tactics. In general in (Lewicki et al., 2024, Chapter 2, p 61) the authors recommend not to use them as they cause damage in the negotiation process. However, it is important to know them and know how to deal with them.
In (Lewicki et al., 2024, Chapter 2, pp. 61-62) 4 possible strategies to face these tactics are pointed out:
To my family that supports me
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To the R Core Team, the creators of RStudio IDE, Positron, Quarto and the authors and maintainers of the packages tidyverse, ggrepel, latex2exp, scales and tinytex for allowing me to access these tools without paying for a license
Both \(J\) and \(S\) have a common interest in cooperating but conflicting interests on how exactly to cooperate. For that reason a negotiation situation arises (Muthoo, 1999)
Also known as settlement range or zone of potential agreement
It is define as the set of issues that will be negotiated
In negotiation contexts as it is pointed out in (Lewicki et al., 2024), screening activities are tactics used to avoid disclosing sensitive information.
Remember that negotiation as a form of decision making is not the only method that exists!